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Burger King Corporation and online marketplace eBay announced their intention to enter into a multi-year agreement. The strategic alliance between the two companies will create the first Internet-based loyalty program in the fast-food industry, which is scheduled to launch early next year.

Under the loyalty program, when Burger King customers purchase certain food or drink items from Burger King restaurants, they will earn "points" that can be deposited and tracked on a co-branded Burger King and eBay site. Customers will use these points to bid on rewards that have been posted on the Burger King and eBay site. Burger King Corporation will make available approximately one million rewards during 2002. Through its relationship with Burger King Corporation, AOL Time Warner, for example, may provide a wide range of these rewards, such as CDs, concert tickets, and other entertainment experiences.

"Burger King Corporation and its franchisees are committed to providing our customers with value and innovative experiences that will bring them back again and again," said Chris Clouser, executive vice president and chief global marketing officer at Burger King Corporation. "This new program will reward our loyal customers by combining the food they already love with exciting new rewards from other great brands and alliances delivered via the convenience and fun of eBay."

"Burger King Corporation is a very innovative company, and this unique program is a great example of their strong commitment to their customers," said Brian Swette, chief operating officer at eBay. "The development of this loyalty program demonstrates the flexibility and power of the eBay platform. We think it will be very popular among Burger King customers and the eBay community."

Burger King Corporation and eBay will also develop online and offline marketing programs to promote the loyalty program, including significant in-store promotion at the 8,400 Burger King restaurants in the United States.